India’s Jet Airways may face bankruptcy proceedings

INDIA’S troubled airline, Jet Airways may face bankruptcy proceedings as the potential bidders for the airline failed to show any firm interest so far in bailing out the company.

Naresh Goyal founded airline was forced to halt all its operations last month after its banks refused to pump more funds to keep the airline flying.

Once India’s largest private airline Jet, saddled with around $1.2 billion (£923 million) of bank debt.

Cash crunch hit airline has also defaulted on the payments to the lessors, employees, and others.

A source was quoted in Reuters: “Companies that had submitted initial expressions of interest are not following up with binding bids.”

India’s civil aviation regulator, Directorate General of Civil Aviation (DGCA) said that lessors have already asked to return more than 50 per cent of the Jet’s fleet of about 155 planes.

The troubled airline is voluntarily returning some of the aircraft.

Meanwhile, employees of the airline said that they were planning to take the company to the country’s bankruptcy court.

Employees of the company said they have not been paid for months and considering to take the airline to India’s bankruptcy court, National Company Law Tribunal (NCLT).

Pushing the company for bankruptcy proceeding may not yield positive results, industry experts opine.

Market analysts opine that the airline will shut its operations permanently if the bidders fail to show firm interest in the bidding process.

The lenders do not have any incentive to push the company to the bankruptcy court.